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The dollar made little progress as investors opted for riskier assets, with the Fed widely expected on Wednesday not to hike rates for the first time since January 2022. "Investors have been looking forward to a Fed pause in the rate hiking cycle since they started over a year ago. The technology-heavy Nasdaq Composite (.IXIC) added 202.78 points, or 1.53%, to 13,461.92 in its biggest one-day percentage gain since May 26. Traders are pricing in a roughly 75% chance of the Fed keeping rates steady, and a 25% chance of a 25-basis-point rate hike, according to the CME FedWatch tool. Given said a Fed hike "would likely be very dollar-positive as it would go against current market expectations."
Persons: Brendan McDermid, Price, Burns McKinney, McKinney, Sterling, Helen, Brent, Sinéad Carew, Gertrude Chavez, Dreyfuss, Elizabeth Howcroft, Andrew Heavens, Nick Zieminski, Lisa Shumaker Organizations: New York Stock Exchange, REUTERS, U.S, CPI, PPI Fed, Treasury, U.S . Federal Reserve, Brent, Consumer, Index, PPI, NFJ Investment, Dow Jones, Nasdaq, Traders, Reserve Bank of Australia, Bank of Canada, European Central Bank, Bank of Japan, Monex USA, Thomson Locations: New York City, U.S, Dallas, Washington
The dollar pared gains after earlier climbing to a fresh 24-year peak versus the yen, holding above levels that prompted intervention by Japan last month. Sterling regained ground after a sharp fall the previous day as investors eyed the Bank of England's next steps. In currencies, sterling was last trading at $1.1091, up 1.17% on the day after going as low as $1.0925 earlier. read moreThe euro fell 0.04% against the dollar to $0.9699 while the Japanese yen weakened 0.67% versus the greenback to 146.84 per dollar. Gold eked out gains on Wednesday after five sessions of losses, although an uptick in the dollar kept prices in check as investors waited for the Fed minutes.
The dollar pared gains after climbing to a fresh 24-year peak versus the yen, holding above levels that prompted intervention by Japan last month. Sterling regained ground after a sharp fall the previous day as investors eyed the Bank of England's next steps. read moreRegister now for FREE unlimited access to Reuters.com Register"For the most part there's nothing too earth shattering in the Fed minutes. But he cited discussions of calibrating the response, suggesting awareness of the risk of hiking rates too fast. Gold eked out gains on Wednesday after five sessions of losses, although an uptick in the dollar kept prices in check as investors waited for the Fed minutes.
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